This is a actual case that was handled by way of our surety bond specialists… A doozie! See what you may make of it.
This is a Performance Bond request for a multi-million dollar subcontract
The applicant / most important is a long set up company
They have effectively finished similar sized projects
The enterprise has a modest net well worth, however is on a worthwhile fashion. Ratios are OK.
Personal monetary statements of the stockholders upload extra net really worth to the image
The enterprise is owned by a father and son. Son is the primary stockholder.
We cited their SS numbers are just a few digits apart
Father has a widespread net worth. Son has a small net really worth as indicated on his non-public announcement.
The applicant has started out the subcontract
The GC / obligee has a obligatory bond form – very difficult. It efficiently makes it a forfeiture bond (obligee completes the process and sends you the invoice.)
Father has a dwelling believe
Son also indicated he has a believe
A lot of moving elements. What are the problems?
Low business enterprise net worth. Too low for the size bond asked.
“Close” SS numbers suggest these people are immigrants (acquired SS numbers at about the same time). Are they U.S. Citizens?
Started subcontract. Why have been they allowed to start without a bond? Degree of entirety? Work suitable? Bills paid? On agenda?
Do we want to put in writing a forfeiture bond shape (economic assure?)
What property are inside the trusts? Can they deliver indemnity? Will we depend on the indemnity of a accept as true with?